SpaceX competitors Virgin Galactic and Rocket Lab jump on Musk-Trump feud
Who’s winning from Elon Musk and Donald Trump’s lost friendship?
President Donald Trump and Tesla CEO Elon Musk may have lost their friendship in a very public social media battle yesterday, but there were some winners: Musk’s competitors, including Rocket Lab and Virgin Galactic.
Rocket Lab is up 6% and Virgin Galactic is up 9% premarket.
Yesterday the president threatened to “terminate Elon’s Governmental Subsidies and Contracts,” something that could have huge negative consequences for SpaceX. Musk, for his part, tweeted that he’d decommission SpaceX’s Dragon spacecraft and potentially strand NASA astronauts at the space station — a comment he appears to have walked back.
Meanwhile, Musk’s public EV company Tesla lost a record $152 billion in market cap yesterday, though the stock is trading up premarket, perhaps on some signs that the feud may be thawing or that the drama was simply oversold.
The rift doesn’t appear to be having an obvious effect on Tesla’s EV competitors, who would also suffer from Trump legislation cutting EV incentives and regulatory credits.